Madhya Pradesh HC stays Dec 31 AGM of Religare Enterprises

Madhya Pradesh High Court has stayed the annual general meeting of Religare Enterprises Ltd (REL) scheduled for December 31 amid a tussle between the company's Chairperson Rashmi Saluja and the Burman family over the open offer.

"Till further orders, the notice dated December 9, 2024 and the Annual General Body Meeting of Respondent No. 7 (Religare Enterprises) which is scheduled to be held on December 31, 2024 shall remained stayed," Madhya Pradesh High Court said in its order.

Religare Enterprises in a regulatory filing on Thursday said, "The company is in receipt of an email forwarding letter dated December 26, 2024 from the Counsel for the petitioner in Writ Petition (WP 40618/2024) (Vijayant Mishra vs RBI & Others) before the High Court of Madhya Pradesh at Jabalpur," forwarding an order dated December 18, 2024.

Earlier this month, the Reserve Bank of India (RBI) approved the open offer of the Burman family -- the promoters of FMCG major Dabur -- to acquire an additional 26 per cent stake in NBFC firm REL.

As of September 30, 2024, Burmans, through its four entities, collectively own a 25.12 per cent stake in REL.

The RBI said it has granted "approval for the proposed increase in shareholding of existing shareholders" -- four Burman family entities Puran Associates, VIC Enterprises, M B Finmart, and Milky Investment & Trading Company -- in REL.

The Burman family -- a promoter of Dabur India and other entities such as Eveready Industries -- through its entities, in September last year announced a Rs 2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company.

However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority